Strategy shareholders approved daily dividends for its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC), a financing change the company says may support access to capital if required filings take effect.
Strategy reported preliminary results showing 99.3% of votes cast favored amendments affecting four preferred series: STRF, STRC, STRK and STRD. The first STRC record date is Sunday, Nov. 1, and the initial payment is scheduled for Monday, Nov. 2. Strategy’s proxy sets daily record dates for STRF, STRK and STRD to begin Jan. 1, 2027, with their first payments scheduled for Jan. 4. Voting eligibility belonged to common stockholders; ownership of preferred shares alone did not qualify a holder.
Under the revised schedule, each calendar day would determine eligibility for a dividend, with any amount declared for that date scheduled for the next business day. Dividends are payable only if declared, and the amended certificates must be filed and become effective before the new terms apply. For shares cleared through The Depository Trust Company (DTC), the Sunday record date is treated as the preceding day that is not a DTC holiday. Weekends and Federal Reserve Bank of New York closure days can also cause multiple record dates to share a payment date.
Strategy said STRC’s annualized rate remains 12%, which it has maintained to support trading near the shares’ $100 stated amount. The company said shorter waits between record dates and payments may let preferred holders reinvest distributions sooner. Its proxy also said more attractive preferred shares could support access to preferred-equity capital and benefit common stockholders.
Strategy’s proxy says STRC moved to semi-monthly dividends in June and cites positive stakeholder feedback before the proposed daily schedule. EconoTimes previously reported that the daily STRC plan depended on shareholder approval and an effective certificate amendment.
The first STRC record date under the approved plan remains scheduled for Nov. 1, with the initial payment set for Nov. 2 if the amended certificate takes effect.
